Correlation Between Shenzhen New and Hainan Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen New Nanshan and Hainan Mining Co, you can compare the effects of market volatilities on Shenzhen New and Hainan Mining and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shenzhen New with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen New and Hainan Mining.
Diversification Opportunities for Shenzhen New and Hainan Mining
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Hainan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen New Nanshan and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Shenzhen New is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shenzhen New Nanshan are associated (or correlated) with Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Shenzhen New i.e., Shenzhen New and Hainan Mining go up and down completely randomly.
Pair Corralation between Shenzhen New and Hainan Mining
Assuming the 90 days trading horizon Shenzhen New Nanshan is expected to generate 1.18 times more return on investment than Hainan Mining. However, Shenzhen New is 1.18 times more volatile than Hainan Mining Co. It trades about 0.2 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.08 per unit of risk. If you would invest 267.00 in Shenzhen New Nanshan on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Shenzhen New Nanshan or generate 14.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen New Nanshan vs. Hainan Mining Co
Performance |
| Timeline |
| Shenzhen New Nanshan |
| Hainan Mining |
Shenzhen New and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen New and Hainan Mining
The main advantage of trading using opposite Shenzhen New and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen New position performs unexpectedly, Hainan Mining can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Shenzhen New vs. Guangdong Marubi Biotechnology | Shenzhen New vs. Ningbo Ligong Online | Shenzhen New vs. Quectel Wireless Solutions | Shenzhen New vs. Sichuan Hebang Biotechnology |
| Hainan Mining vs. Silkroad Visual Technology | Hainan Mining vs. Longjian Road Bridge | Hainan Mining vs. Juneyao Airlines | Hainan Mining vs. Hainan Haiqi Transportation |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |